This paper analysis the relationship between corruption and non-performing-loans. Background are EU-programs to help member countries with loans in times of crises. Non-performing-loans and bank failures are regarded as signs of crises. It turns out that most of such loans have been allocated to countries with high corruption grades. The economic literature reveals however that non-performingloans and bank failures are common phenomena in corrupt countries and no signs of specific and acute crises. They are the ordinary consequence of corruption.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.